# Global electrification and energy transition trends

> Live situation record from CLSTR: https://clstr.news/situations/global-electrification-and-energy-transition-trends
> Updated: 2026-09-24T23:45:00.000Z. Sources: 16. Developments: 3.

The global transition toward electrification is gaining momentum across industrial and macro-economic sectors. Projections indicate the industrial process electrification market alone could grow from $18 billion in 2025 to $74 billion by 2035, driven by technologies such as industrial heat pumps, electric boilers, and induction heating to support manufacturing decarbonization.

A recent International Energy Agency (IEA) report, prepared at the request of Türkiye and Australia for COP31 discussions, identifies a new ‘Age of Electricity’ where electricity consumption is growing faster than the global economy and nearly twice as fast as total energy demand. While electricity currently accounts for approximately 23% of global final energy consumption, the IEA suggests it could profitably reach 33% by 2035 using currently cost-competitive technologies, bringing the world close to the COP31 target of 35%.

This shift could potentially reduce annual energy import bills for importing nations by over $400 billion and decrease household energy costs by approximately 15%. The transition is being driven by electric vehicles, heat pumps, digitalization, and artificial intelligence.

However, achieving the 35% target requires electricity demand to grow by roughly 1,400 terawatt-hours annually. To support this, the IEA emphasizes that global grid capacity may need to increase by at least 30% by 2035, requiring modernization to occur 40% faster than in the previous decade. Significant barriers persist, including stalled renewable energy projects in grid-connection queues, rising costs for critical equipment like transformers, and institutional challenges in developing regions, such as the poor financial health of utilities in parts of Asia and sub-Saharan Africa.

## Timeline

### 2026-09-24: IEA report: 35% global electrification target within reach by 2035

An IEA report states that reaching 35% global electrification by 2035 is possible with current technologies, though significant grid expansion and infrastructure investment are required.

4 sources. https://clstr.news/cluster/iea-report-35-global-electrification-goal-within-reach-by-2035

### 2026-09-22: IEA report: Global electrification could reach 33% by 2035

An IEA report finds that cost-competitive technologies could raise global electricity's share of energy use to 33% by 2035, potentially saving importers $400 billion annually and cutting household energy bills.

10 sources. https://clstr.news/cluster/iea-releases-global-electrification-report-ahead-of-cop31

### 2026-09-14: Industrial process electrification market to reach $74 billion by 2035

The industrial process electrification market is forecast to reach $74 billion by 2035, driven by the transition from fossil fuels to electric heating and heat pumps to decarbonize global manufacturing.

3 sources. https://clstr.news/cluster/energy-harvesting-tree-market-projected-to-reach-usd-4374-million-by-2036

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Cite as: Global electrification and energy transition trends. CLSTR, https://clstr.news/situations/global-electrification-and-energy-transition-trends